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To you, yes, but to the law and perhaps more importantly – to the relevant tax agency, a business is meant for turning a profit. If the founders aren't interes
by drrotmos 13y ago
To you, yes, but to the law and perhaps more importantly – to the relevant tax agency, a business is meant for turning a profit.
If the founders aren't interested in turning a profit, a charity will serve them better.
- sillysaurus 13y agoSpaceX's goal is to get to mars, not to turn a profit. And that's just one counterexample of hundreds.
- samscully 13y agoIANAL, but as far as I understand a company director only has a 'duty to promote the success of the company' in the UK [1]. I think it is similar in the US. 'Success of the company' doesn't strictly have to mean making a profit, if the shareholders don't want it to. [1] http://www.taxresearch.org.uk/Blog/2013/01/07/companies-do-not-have-a-legal-duty-to-maximise-profit-or-to-avoid-tax/ http://www.taxresearch.org.uk/Blog/2013/01/07/companies-do-n...